CERTIFIED PAYROLL CERTIFIED PAYROLL Introductions Introductions - - PDF document

Certified Payroll Workshop – District 2 April 2, 2012 1 CERTIFIED PAYROLL CERTIFIED PAYROLL WORKSHOP WORKSHOP

Hosted by M Squared Engineering, LLC

• n behalf of

The Illinois Department of Transportation – Office of Business and Workforce Diversity April 2, 2012

Introductions Introductions

Presenters:

• Vinu Patel
• Minal Hahm, PE, CFM

Attendees – Welcome and introduce

around the room

• Name / Title
• Company
• How can we help you today?

Miscellaneous Miscellaneous Announcements Announcements

Cell phones Format for today

• Casual – questions can be asked

throughout

• Will have a brief break half-way through

Pre-requisite

• Attendees understand DOT website
• Good understanding of reading plans and

specifications

• If not – we’ll work through it and follow up

with more detail at a later date.

Certified Payroll Reporting Certified Payroll Reporting Requirements Requirements - Davis Davis-Bacon Bacon Act Act

A U.S. federal law, the Davis-Bacon Act of 1931, set wage rate requirements on government funded construction projects (public work projects). All contractors and subcontractors who perform work on government construction contracts and federally-assisted construction projects

• ver $2,000.00 are required to submit

weekly-certified payroll reports to ensure government contract compliance.

Purpose of the Davis Purpose of the Davis-Bacon Bacon Act Act

Assures workers a fair wage Provides contractors a fair opportunity Helps to keep the local workers

employed

Distributes employment & federal

money equitably

Purpose of the Copeland Purpose of the Copeland “Anti “Anti-Kickback” Act Kickback” Act

Prohibits contractors from inducing an

employee to give up any part of the compensation to which they are entitled under their contract of employment.

Requires the contractor to submit a

weekly statement of the wages paid to each employee performing covered work.

Certified Payroll Workshop – District 2 April 2, 2012 2 Certified Payroll Reporting Certified Payroll Reporting

A Certified Payroll Report (SBE 48) is a specially formatted payroll report, consisting of two pages:

• Payroll Report – This contains information

about who worked on the job, how much you paid them, etc.

• Statement of Compliance – This contains

legal language and requires the original signature of a company official who is signing this document under penalty of perjury.

Certified Payroll Reporting Certified Payroll Reporting

Information reported in the Certified Payroll must also match:

• Equal Employment Opportunity

Workforce Analysis (SBE 956) –Monthly report that looks at number of employees and the number of hours that they worked.

• Weekly Trainee Report (SBE 1014) –

Reports hours and days worked by trainees weekly.

• Internal Revenue Service – Report to

the IRS what the employees made.

Certified Payroll Reporting Certified Payroll Reporting

Illinois has enacted their own prevailing

wage laws.

To Find Illinois prevailing wage rates, go to

the Illinois Department of Labor website listed below:

http://www.state.il.us/agency/idol/rates/rates.HTM

• 1. Select the month-year that you are

interested in.

• 2. Select the county where the construction

work will occur.

Certified Payroll Reporting Certified Payroll Reporting Certified Payroll Reporting Certified Payroll Reporting Prevailing Wage Rates Prevailing Wage Rates Example Example

Certified Payroll Workshop – District 2 April 2, 2012 3 Certified Payroll Reporting Certified Payroll Reporting

How much time should I expect to fill

• ut the form?

For 8 employees, it should take about 1

hour

What other forms might I be required to

submit?

Fringe Benefit Reports EEOC / Work Utilization Report ARRA Reports

Prevailing Wage Law Prevailing Wage Law Requirements Requirements

Pay your employees on a weekly basis. That Certified Payroll Reports should be

completed and submitted on a weekly basis to the company that hired you within 7-10 business days from the date that you paid your employees.

No Work Payrolls are required whenever

there is a temporary break in your company’s work on the project.

Reports must be numbered

consecutively, including the “No Work” payrolls.

Prevailing Wage Law Prevailing Wage Law Requirements Requirements

Every Contractor or Subcontractor is required

to keep to complete set of their own certified payroll reports and other basic records, such as, time cards for the project and payroll records, for at least 3 years AFTER the project is completed.

ARRA Reports are required to be submitted

Monthly.

EEOC/Work Utilization Reports can be

required to be submitted Weekly, Monthly, or Annually; depending upon the state your business resides in and the Public Entity that

• riginally put the job out to bid.

Fringe Benefit Reports can be required to be

submitted monthly but not less than quarterly.

Certified Payroll Workshop – District 2 April 2, 2012 4

123456 2378 Dane Hill Road West Charleston, IL 05872

X

Form SBE 48 Form SBE 48

I-5 Main-Vine 1 Cook 7 11-Jun-2010 49L11

Form SBE 48 Form SBE 48

Eleven C Employee 156 No Street Anytown,None 59932 4444

W LA J

Form SBE 48 Form SBE 48

Certified Payroll Workshop – District 2 April 2, 2012 5

Sun Mon Tue Wed Thu Fri Sat 0 2.92 6.45 3.07 1.75 3.07 17.26 $17.90 $ 308.95 $2,237.86

Form SBE 48 Form SBE 48

$474.93 $ 127.57 $ 65.98 -- $ 668.48 $ 1,569.30

Form SBE 48 Form SBE 48

Deductions Deductions Federal Withholding Tax Federal Withholding Tax Common Mistakes in Filling Out Common Mistakes in Filling Out Payroll Report Payroll Report

• 1. Work Classification is not on payrolls.
• 2. Not stating if a person is an Apprentice
• r not.
• 3. Wrong wages paid.
• 4. Only need the full employees name and

last four digits of the social security number.

• 5. Statement of Compliance is not being

signed.

• 6. Payrolls are not numbered and “Final”

is not marked as final payroll.

Certified Payroll Workshop – District 2 April 2, 2012 6

When Certified Payroll Reports When Certified Payroll Reports Are Not Correct Are Not Correct

Puts you in bad standing with the

Project Owner/General Contractor, Department of Labor, etc. and can damage the overall cash position of your company. Examples:

• Your reports are rejected due to

inadequate information.

• You did not pay your employees the

wage rates listed in the Wage Decision

• You paid your employees their normal

“non-prevailing wage rate” and you didn’t submit certified payroll reports

Summary of Completing the Summary of Completing the Certified Payroll Certified Payroll

Need to submit:

• Contractor or Sub-contractor Checkboxes
• Company Address
• Payroll Number.

(e.g. Payroll No. 1 for 1st week of work on the job)

• For Week Ending (use the week ending

date)

• Project Number.
• Contract Number.

Summary of Completing the Summary of Completing the Certified Payroll Certified Payroll

Payroll Summary Information

1.

Name and Individual Identifying Number (e.g. Last four digits of Social Security Number) of worker

2.

Withholding Exemptions

3.

Employee Work Classification

4.

Hours Worked: Day and Date

5.

Total Hours

6.

Rate of Pay / Cash Fringes

• Contractors Paying Fringe Benefits in Cash to the Employee
• Contractors Pay All Required Fringe Benefits to a Union or

Bona-Fide Fringe benefit Plan

Summary of Completing the Summary of Completing the Certified Payroll Certified Payroll

Payroll Summary Information

7.

Gross Amount Earned This Job / All Jobs

8.

Deductions; Based on Gross Wages ALL Projects

9.

Net Wages Paid for the Week

Summary of Completing the Summary of Completing the Certified Payroll Certified Payroll

Completing the Statement of Compliance

• 1. Date
• 2. Your Name & Title
• 3. Company
• 4. Project / Job Name
• 5. Work Week Beginning Date
• 6. Month of
• 7. Year
• 8. Work Week Ending Date
• 9. Month
• 10. Year

Summary of Completing the Summary of Completing the Certified Payroll Certified Payroll

Completing the Statement of Compliance

• 11. Company
• 12. Deduction Statement
• 13. Fringe Benefit Check Boxes
• Where Fringe Benefit are Paid to Approved Plans, Funds.
• r Programs
• Where Fringe Benefits are Paid in Cash
• 14. Exceptions
• 15. Remarks
• 16. Your Name
• 17. Your Title
• 18. Signature

Certified Payroll Workshop – District 2 April 2, 2012 7

District 2 Items from for September 17 letting

• Drainage
• Erosion Control (Landscape)

15 - IL 78 Morrison

• 18” Pipe Culverts
• Grading & Shaping

16 – Green River Rd. Colona (SBSA)

• Concrete
• Drainage

29 – Rood Ave. South Beloit

• Aggregate Shoulders
• Small Business Set-Aside

59 – IL 172 T ampico

• Aggregate Shoulders
• Small Business Set-Aside

60 – IL 78 & IL 73 Carroll County

District 2 Items from for September 17 letting

• Aggregate Shoulders
• Small Business Set-Aside

61 - IL 78 JoDaviess – Stephenson Co.

• Earth Excavation, Pipe Culverts
• Concrete C&G, Fence
• Landscaping

80 – IL 76 @ Orth Rd. Boone County

• Concrete
• Landscape / Streetscape

88 – Stephenson St. Freeport

• Concrete
• Streetscape

89 – River Dr. Moline

• Aggregate Shoulders
• Concrete Sidewalk
• Detector Loops, Guardrail

90 – Spring Brook Rd Rockford

Mobilization Payments Mobilization Payments Section 671 Section 671

The amount which a Contractor will

receive payment for will be limited to 6% of the original contract amount.

The amount over 6% will not be paid

until 90% of the adjusted contract value is earned

Certified Payroll Workshop – District 2 April 2, 2012 8

Mobilization Payments to Prime Mobilization Payments to Prime Contractor Contractor - Section 671 Section 671

75% of the mobilization will be paid

upon execution of the contract.

Additional 15% will be paid when 10%

• f the original contract amount is

earned.

The remainder of mobilization will be

paid when 90% of the adjusted contract value is earned.

Mobilization Payments to Sub Mobilization Payments to Sub- Contractor Contractor – BDE Special BDE Special Provision Provision (Sub

(Sub-

• contractor Mobilization

contractor Mobilization Payments) Payments)

3% of the amount of the subcontract

reported on form BC 260A submitted for the approval of the subcontractor’s work is to be paid at least 14 days prior to the subcontractor starting work.

Common Errors on Common Errors on Certified Weekly Payroll Certified Weekly Payroll Submittals Submittals

Use of improper classifications

• Owner/operator, official title – Secretary,

etc.

Use of improper work classifications

• Ironworker vs. laborer, traffic safety worker,

etc.

• Failure to show how fringe benefits are paid
• ut
• In cash to employees or into approved fund

Common Errors on Common Errors on Certified Weekly Payroll Certified Weekly Payroll Submittals Submittals

Improper payment of overtime

• State vs. Federal

Improper submittal

• Monthly payroll submittal when it is to be

sent weekly

Inaccurate Payrolls

• Number of employees not correct, dates

not correct

Special Thanks Special Thanks

PTAC / EigerLABS IDOT District 2 Fred Marruffo District 2 EEO Officer Illinois Department of Transportation 819 Depot Avenue Dixon, Illinois 61021 Phone: (815) 284-5345 Fax: (815) 285-5262 Email: Fred.Marruffo@illinois.gov

Upcoming Workshops Upcoming Workshops

District 2

• April 19, 2012 – Trucking
• May 17, 2012 – Documentation and

Surveying

• June 14, 2012 – Patching – Asphalt &

Concrete

• July 19, 2012 – Force Account
• August 16, 2012 – Concrete – Flat & Vertical

District 3

• April 3, 2012 - Plan Review and

Specifications

• May3, 2012 – Trucking
• May 22, 2012 – Certified Payroll

Certified Payroll Workshop – District 2 April 2, 2012 9 Questions??? Questions???

M Squared Engineering, LLC

• Vinu Patel
• vpatel@msquaredengineering.com
• (630) 453-8994
• Minal Hahm
• minal@msquaredengineering.com
• (262) 376-4246